JPMorgan Chase plans sharp work-force cuts

Tuesday, February 26, 2013 10:50 AM

JPMorgan Chase & Co., the
biggest U.S. bank, plans to reduce headcount by as much as 19,000 people in its
mortgage and community banking businesses - more than 7 percent of its 259,000
employees -- by the end of next year, Bloomberg
reported.

The company expects 4,000 job
reductions this year, the New York-based lender said today in presentations on
its website. Those reductions will occur almost entirely through attrition,
said Kristin Lemkau, a spokeswoman for the lender. The mortgage business will
shrink by 13,000 to 15,000 jobs through 2014, while community banking excluding
mortgages will lose 3,000 to 4,000 jobs during that period, according to the
presentation.

CEO Jamie Dimon is seeking
expense reductions after posting three straight years of record net income.
Mortgage profits that have driven earnings at JPMorgan and Wells Fargo &
Co. may fade this year as increased competition keeps the rates banks offer on
new loans near all-time lows.

Financial firms are also cutting jobs after
reaching a settlement with U.S. regulators that resolves the companies'
obligations to review foreclosure documents.